Hopewell Borough has spent the past several years wrestling with issues related to its public water system.
The presence of man-made “forever chemicals” known as PFAS and PFOS in testing results for borough water has led the Department of Environmental Protection to label Hopewell noncompliant according to state regulations.
The borough says that bringing the water system up to compliance will require significant capital improvements. For this reason, it has made the decision to sell the water system to the top bidder, in this case New Jersey American Water, which already provides some of the borough’s water via interconnection.
The sale is subject to a vote by borough residents in this fall’s general election. In Hopewell Borough, ballots will include a binding yes/no referendum question on whether to sell the borough’s water infrastructure to NJAW for $6.4 million. The borough council formally decided on the language of the referendum question in July.
The borough has held a number of town hall meetings about the potential sale this year, with some residents voicing concerns about whether this deal is in their best interest.
To this, New Jersey American Water president Mark McDonough says: yes, we are the best option to ensure that the borough’s aging pipes, wells and water supply systems will be taken care of. And: New Jersey American Water makes these kinds of deals on a regular basis.
McDonough spoke to the Hopewell Express early last month in advance of the November referendum.
“We have had good success recently telling our story. We think it’s a good one, particularly in Hopewell,” McDonough said.
New Jersey American Water is the largest regulated water utility in the state, McDonough said, with 2.9 million people in 190 New Jersey communities receiving water and wastewater services through the utility. (Note: Hopewell Borough’s wastewater system is not subject to the referendum, and is set to remain borough property.)
New Jersey American Water is part of American Water, which provides water utility services in 14 states coast to coast. Its New Jersey HQ is situated on the Camden waterfront.
New Jersey American Water submitted the top bid to take over the water system, which the borough says is in urgent need of remediation and rehabilitation to be deemed compliant with clean water standards.
As part of the deal, New Jersey American Water has pledged to invest $7 million in infrastructure improvements and full replacement of all lead service lines by July 2031, with no direct cost to the borough or its customers.
NJAW has also pledged to place Hopewell customers on a rate schedule that would see borough fees fall in line with those paid by NJAW customers in Princeton and Montgomery.
If the referendum passes after the Nov. 4 vote, NJAW would then have to get consent from the state Board of Public Utilities to take over the system. If that should come to pass, McDonough estimates that the deal could close sometime around summer 2026, after which he says NJAW would immediately start work on some of the rehabilitation and remediation that is necessary.
In seeking this deal, the borough has said that the water system needs a variety of improvements, including remediation of per- and polyfluoroalkyl substances, or PFAS, in the system. The critical step in this process would be the disconnection of Well Number 4 at Model Avenue, which consistently tests at unacceptable levels.
“The variety of issues in Hopewell is not unique to this community,” McDonough said. “The complications that come with emerging contaminants (like PFAS) — many towns are overmatched because of their size. A regulated utility like New Jersey American Water has the ability to invest capital and the ability to take over O&M (operations and maintenance).”
McDonough said that even if a town like Hopewell were to bear the expense of rehabilitation, that would only be the beginning. “Once you build something like that, you have to operate it. Operations costs are often really an issue,” he said.
If the referendum passes and the deal is cleared by the BPU, McDonough said NJAW would do a hydraulic analysis of the borough’s wells to determine if they should stay closed or if NJAW would be better off finding other sources. “It’s always helpful to have more sources of water (locally), but in some cases it just doesn’t make sense,” McDonough said. “We also know well houses in the town are of particular historical importance. Whatever decision we make will take into consideration the needs of the town to maintain the look of and access to those well houses.”
Some residents have expressed the concern that NJAW will have the power to increase water rates at any time. McDonough downplayed that fear.
“We aren’t at liberty to simply raise rates whenever we want to,” he said. “We have to go and justify to BPU the need to raise those rates. That’s why rates stay very flat and consistent.”
NJAW has been through a number of referendums in recent years throughout the state, and McDonough says that experience will prove valuable in Hopewell. Although NJAW is the largest water utility in the state, he said, “we really see ourselves as a local operation.”
When problems arise, McDonough said, NJAW takes pride in taking quick action.
“Our employees live in the areas where they work. We have nine operating centers across the state, with 300 employees at my disposal if there is an issue in Hopewell Borough. I can bring to bear significantly greater assets and knowledge of assets in that town than any borough or city in New Jersey can.”
McDonough said that he enjoys meeting with prospective customers and that he and his staff look forward to going door to door in the borough, speaking with residents and taking the opportunity to discuss the potential transfer with them.
“The challenge that these towns are facing is that there’s simply not financial wherewithal or technical knowledge to continue to run these systems,” McDonough said. “There may be grants here or there, but there are continual costs to operating the system and so we look forward to talking to the people of Hopewell Borough and having an open and transparent transfer (of operations).”
(Photo courtesy of Hopewell Borough.),
